MILRITE ACT (ECONOMIC DEVELOPMENT SYSTEM) Act of Jul. 1, 1978, P.L. 584, No. 109 AN ACT Cl. 12 Establishing an agency to create the linkage necessary for the planning of an economic development system for Pennsylvania, and making an appropriation. TABLE OF CONTENTS Section Section Section Section Section Section Section Section Section Section 1. 2. 3. 4. 5. Short title. Definitions. Legislative purpose. Creation of council. Appointment of members, terms, qualifications and removal. 6. Powers and duties of council. 6.1. Area labor management committees. 7. Limited duration. 8. Appropriation. 9. Effective date. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Short title. This act shall be known and may be cited as the "Milrite Act." Section 2. Definitions. The following words and phrases when used in this act shall have, unless the context clearly indicates otherwise, the meanings given to them in this section: "Area labor management committee." An organization formed by and composed of multiple employers of diverse industries and multiple labor organizations, as defined in section 2(5) of the National Labor Relations Act (49 Stat. 449, 29 U.S.C. § 151 et seq.), operating within or focusing upon city, county or contiguous multicounty jurisdictions for the purposes of: (1) Improving communications between labor and management. (2) Providing a forum to discuss and investigate ways to further the goals of increased quality of work life and increased productivity. (3) Discovering ways to improve organizational effectiveness. (4) Finding solutions to problems of mutual concern to both labor and management not susceptible to resolution within the collective bargaining structure. (5) Enhancing economic development within the jurisdiction through labor management cooperation. (Def. added May 31, 1984, P.L.378, No.77) "Council." The milrite agency established by this act. "Milrite." The acronym formed from the words: "Make Industry and Labor Right in Today's Economy." Section 3. Legislative purpose. The Commonwealth of Pennsylvania has served as the keystone in establishing and advancing basic industrial manufacturing in the United States. Today it faces a loss of confidence among key segments of the general public, business and labor communities. It now faces the loss of critical industries and a willing, able and well qualified work force. The development and stability of Pennsylvania's economy is a legitimate public purpose. The Commonwealth cannot remain healthy, socially or economically, when its industrial might and natural resources are underdeveloped and when its people are chronically unemployed or underemployed. There is need for an organization evolving cooperative innovative economic stimuli from the public, private and labor sectors. It should combine the expertise and influence of labor and business with governmental policy makers to act as a catalytic force to create a comprehensive economic development plan and program for implementation of specific development objectives. Aware of the economic and sociological consequences of industrial dislocation the General Assembly calls upon business and labor by enacting an independent labor, business and governmental council to act as a catalytic agent to reduce the fragmentation of our resources and to establish the linkages necessary for a successful planning and economic development delivery system. It shall have the capability to create strategy and implementing machinery to maintain Pennsylvania as a leading industrial State. Section 4. Creation of council. There is hereby created a quasi-public, independent, economic development agency to be known as the Milrite Council. Section 5. Appointment of members, terms, qualifications and removal. (a) The council shall consist of 15 members appointed by the Governor. They shall include one member selected by the Governor, two members selected by the President pro tempore of the Senate, two members selected by the Speaker of the House of Representatives, and five members each from lists provided by the Pennsylvania AFL-CIO and the Pennsylvania Chamber of Commerce. The two members selected for appointment by the President pro tempore of the Senate and the two members selected for appointment by the Speaker of the House of Representatives shall be members of the majority and minority parties in each body. (b) The member selected by the Governor, two members selected by the General Assembly, and two members each from the lists submitted by the Pennsylvania AFL-CIO and Pennsylvania Chamber of Commerce, shall serve for three years, and three members selected from the lists submitted by the Pennsylvania AFL-CIO and the Pennsylvania Chamber of Commerce shall serve for six years and two members selected by the General Assembly shall serve for six years. Thereafter all members shall be appointed for a term of six years or until a successor is appointed and qualified. Members shall be eligible for unlimited reappointment. (c) The members of the council shall be selected from outstanding leaders in business, and labor who are the policymaking and policy-implementing executives of their respective unions and companies. (d) Members of the council shall receive no compensation but shall be entitled to receive an allowance for expenses incurred in the performance of their duties. (e) The council shall elect one of the nongovernmental members as chairman, who, when present, shall preside at meetings. The council shall also elect one of its members to serve as an alternate chairman to preside when the regular chairman is absent. The chairman and vice chairman shall be elected by the council members for a three-year term. Candidates shall be limited to members representing the labor and business groups. The chairmanship shall be occupied by a member representing one group and the vice chairmanship occupied by a member representing the other group. The council shall designate the officials, committees and subcommittees it deems necessary to carry out the intent of this act. (f) An action or order of the council shall require eight affirmative votes. Section 6. Powers and duties of council. (1) Undertake research and investigation relating to the promotion of the industrial potential of Pennsylvania. (2) Create plans for economic revitalization of Commonwealth industries. (3) Recommend implementation procedures for all plans, maximizing existing mechanisms with proven ability to accomplish tasks, linkages among current programs, business, labor and government insights into practicality and workability of suggested approaches. (4) Encourage and stimulate cooperation and coordination among Federal, State and local programs. (5) Recommend structural changes and updating of economic delivery tools of State Government to the Governor and General Assembly. (6) Draw upon labor, management and government participants to promulgate plans and implement procedures. (7) Recommend organizational structure and participants particularly suited to local needs and conditions. (8) Undertake research, including the hiring of consultants, into the cost of doing business in this Commonwealth, including recommendations for changes and estimates of future costs, with comparative analysis of both intrastate and interstate costs. (9) Undertake research, including the hiring of consultants, to determine if the Commonwealth can more effectively use its mediation services to discourage and shorten the duration of labor management disputes. (10) The council shall have the power to: (i) Enter into contracts. (ii) Appoint, fix compensation of, and prescribe duties of an executive director, secretary and such other personnel as the council deems necessary to accomplish the purposes of this act. (iii) Retain counsel. (iv) Accept grants from public and private sources. (v) Borrow money and issue obligations, secured or unsecured, to acquire, hold, own and pledge or dispose of funds, money, securities and other property, real or personal, tangible or intangible to the extent necessary to carry out the purposes of this act. (vi) Adopt and promulgate rules and regulations necessary to accomplish the provisions of this act. Agencies of the Commonwealth shall provide their full cooperation to research conducted by the council, including, but not limited to, the provision of information necessary for conducting research under paragraphs (8) and (9). (6 amended July 9, 1986, P.L.1207, No.104) Section 6.1. Area labor management committees. (a) The council shall establish standards and criteria for the selection of area labor management committees to be assisted by grants under subsection (c), solicit proposals from area labor management committees, review and evaluate the relative merits of such proposals and select those proposals for funding which would best meet the standards and criteria established by the council. (b) The council may use a reasonable amount of any appropriation for grants to area labor management committees to hire staff and provide support for area labor management committees and for carrying out the purposes specified in subsection (a). Funds shall be used for staff and other expenses necessary to perform outreach functions to those areas of the Commonwealth not served by area labor management committees. (c) The council shall designate the area labor management committees which are entitled to receive grants pursuant to subsection (a). Funds appropriated to the Milrite Council for grants to area labor management committees shall be made to those committees, in amounts and under conditions specified by the council, and under the following conditions: (1) The grant shall be matched with as much non-State funds as possible, within the overall goal of attempting to establish and maintain as many area labor management committees as possible. (2) While the highest priority for these funds shall be for the establishment of new area labor management committees, the council shall make use of the money available to it for the grants to ensure the continued existence and expansion of existing area labor management committees, including the provisions of technical assistance and nonmatching grants. ((c) amended July 9, 1987, P.L.206, No.31) (d) The council shall report annually to the chairman and minority chairman of the Senate Committee on Appropriations, the chairman and minority chairman of the House Committee on Appropriations, the chairman and minority chairman of the Senate Committee on Labor and Industry and the chairman and minority chairman of the House Committee on Labor Relations, the accomplishments and specific expenditures of each area labor management committee funded under subsections (a) and (c) including, but not limited to, salaries, rent, contracts and other operational costs. (6.1 amended July 9, 1986, P.L.1207, No.104) Section 7. Limited duration. The council shall continue with its statutory function and duties until December 31, 1994, when it shall terminate and go out of existence unless reestablished or continued by the General Assembly. Evaluation, review, termination, reestablishment and continuation of the agency shall be conducted pursuant to the provisions of the act of December 22, 1981 (P.L.508, No.142), known as the "Sunset Act." (7 amended June 22, 1990, P.L.240, No.55) Section 8. Appropriation. The sum of $200,000, or as much thereof as may be necessary, is specifically appropriated to the council for the fiscal year July 1, 1978 to June 30, 1979 for the purpose of carrying out the provisions of this act. Section 9. Effective date. This act shall take effect in 60 days.